By Titiksha Jewrajka
If you are a college student, you would have heard the word “Financial Literacy” more than you can remember, but the question is, Are you actually financially literate? Financial literacy is the ability to understand and effectively use various financial skills, including personal financial management, budgeting, and investing. College is often the first time in a person’s life when money management skills are needed because now it directly impacts your life. This is the perfect time to know more about the applications of finance in the real world and experience the theoretical concepts of your textbooks. When a person learns a skill in theory and immediately puts it to use, the behaviour becomes ingrained for life, especially when the subject is money. However, studies show that college students are not that knowledgeable about personal finance and often end up spending too much or saving too less. This eventually becomes a habit and the low level of knowledge limits their ability to make informed choices. Answers to the question of why financial literacy is important for college students to run deep and the absolute necessity is obvious.
The first key is to know where you are spending and its relevance. Most of us add up the big purchases and completely discount the smaller amounts that we spend. If you keep track of your expenses faithfully for a month, you’d be shocked at how much the ‘smaller’ purchases can add up to. If you do not keep track of your income and expenses you could be in for a rude awakening. There are several personal finance management tools available online that can help you track your expenses and stick to your budget.
The second key is learning. All students from a commerce background have subjects that offer to teach about all these important concepts but the real question is, do college students really study to learn, or do they just fetch after a passing grade? Where it is okay to take some theoretical subjects lightly, practical subjects that offer to broaden your horizon of experiences should be given the due importance they deserve! If your college curriculum fails to offer what you need, books, magazines, and online publications will help in your quest to be financially literate. You can listen to podcasts if books bore you or even get involved in a financial literacy course online. Listening to podcasts is a more convenient way to tap into expert
Listening to podcasts is a more convenient way to tap into expert knowledge. Finance podcasts can help you in the initial stages of planning and can provide a great kick-start. Some of the best Financial Podcasts for students are listed below:
So Money: Best for Finance Beginners
The Dave Ramsey Show: Best for Getting Out of Debt
The College Investor: Best for Students and New Grads
The Fairer Cents: Best for Women
Money for the Rest of Us: Best for Beginning Investors
The third key is application. There are so many people who pursue courses during their college life but do not end up using them in any way. It merely adorns their resume and has no relevance whatsoever. The key to making the most of your learning is to find someone with similar interests. Consistently engaging in money-focused conversations and discussing various financial plans will eventually spark some interest in the subject and prevent you from any deviation. Receiving tips and ideas from peers can be a great way for anyone to learn a new subject and since college students spend the majority of their time with each other, it becomes all the more convenient and comfortable. Using a variety of techniques, including hands-on activities, discussion questions, and online peer resources, you can help take your youth financial education program to the next level.
Once you start on this journey you’ll realize how finance controls most part of a students’ life and not merely the grownups’. Most people start their financial planning too late, which is after they start earning and then juggle between the pressure to whether manage their work or handle their finances.
Being a college student is an experimental stage because you must have thousands of ideas, plans, and goals in your mind and you need to figure out the best plan to execute them all. Finance and other domains of lifestyle work in the same manner. The sooner you start the better you get at it. As you gain financial knowledge, you’ll be more inclined to set goals for yourself. And besides that, you may find yourself excited and more determined to work towards achieving those goals. Instead of letting money control you, now you would hold the reins to your personal finances. So don’t wait up and dive into the financial circuit right away!
AUTHOR
Titiksha is a student pursuing Bcom (H) from Delhi University and preparing to be a future Chartered Accountant someday. She has been a part of FIC since she was a fresher and it has been an amazing experience. She loves reading books a lot and she seldom writes. She loves hanging out with her friends and her idea of a good day ends with a happy meal! Apart from this, she is just a regular college kid, trying to figure out the world and its ways.
Disclaimer: The views expressed in this article are the author’s own and do not necessarily reflect the views of the organization.
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